Archive | Canby Oregon Housing Supply RSS feed for this section

Canby, Oregon Real Estate Update

21 Jun

Canby Homes, Canby Oregon, Canby Real Estate

Recent figures from the Regional Multiple Listing Service (RMLS) confirm our Canby real estate market remains on the upswing. Click here for the complete report.

The definite upward price trend is due in part to a continued low inventory of homes for sale. A range of three to six months is usually considered a normal housing backlog.Canby, Canby Oregon, Canby Homes, Canby Real Estate

As a result, the average market time for a Canby area home is now at 48 days. The increase in the average greater Canby area home value is now up 7.5% over the past year.

Canby Homes, Canby Oregon, Canby Real Estate

Thinking of selling your Canby area property in this strong seller’s market? Contact our CanbyHomes.com sponsor, Certified Realty using the convenient form below, or call (800) 637-1950.

Advertisements

Can I Trust My Canby Area Realtor?

12 May

Canby Oregon

Most Realtors Are Thankfully Law Abiding

Before entering into a business relationship, it’s helpful to know your Canby area real estate agent is nice, patient, available when needed…and honest. So while many of us assume we’re ‘safe’ in the hands of our doctor, attorney or pastor, what about your Realtor? Find out more here, or use the audio player below.

Due Diligence
Sadly, as seen in this TV news report, not all real estate agents are trustworthy. However, some preliminary work has already been performed by the state of Oregon confirming a real estate agent is sufficiently trustworthy to work with the public. These include a state screening, which involves a criminal background check, fingerprinting and mug shot.  This data is submitted for review by the Oregon Real Estate Agency (OREA), which also provides regular updates about investigations in their insightful publication Oregon Real Estate Agency News Journal.  

Canby Oregon, Canby Homes, Canby Real Estate

Robber John Dillinger Proved Crooks Wear Ties

Of special note is the OREA ‘Administrative Action’ section, which provides information about decisions regarding Oregon real estate violations. The resulting consequences to untrustworthy real estate agents could include a reprimand, license suspension, license revocation and/or a civil penalty. So while no screening process is foolproof (as witnessed by crimes committed by doctors, attorneys and other professionals), the state of Oregon does considerable due diligence to vet real estate agents.

As part of the application process to become an Oregon real estate agent, any felony and misdemeanor convictions and arrests must be disclosed. The disclosure requirement is fairly high, because in addition to any criminal activity, also requiring disclosure are any administrative proceedings, plus civil and even financial issues. For example, if a prospective Oregon real estate agent has an unsatisfied judgment or bankruptcy, each must be disclosed.

Canby Oregon, Canby Homes, Canby Real Estate

Whom Can You Trust?

A Matter of Trust
Trust is an important factor when buying or selling real estate. Thankfully, trusting your Realtor is not super risky. That’s because consumer surveys consistently reflect a high level of satisfaction with Realtor performance.  One study by Forbes magazine revealed 96% satisfaction for the real estate industry. So if many real estate agents were dishonest, we could expect that figure to be much lower. 

This doesn’t mean blindly signing off on every suggestion one receives from their Realtor. But obsessively hand wringing over transaction minutiae is one sure way to make the process less enjoyable. A recommended approach is for Canby area homebuyers and homesellers to carefully read all documents, ask plenty of questions and work with a recommended professional with a solid track record. 

Trust For Homesellers
Looking at trust from a Canby homeseller’s perspective, for starters there’s significant trust needed to deal with buyers. For instance, trust is needed to allow strangers in your house. There’s also trust in taking your property off the market, in the hope a sale will go through. And trust in finding a replacement home.

Trust For Homebuyers
Trust is needed for Canby area homebuyers, too. Trust is necessary in working with a lender and that the discomfort of prequalifying will be worthwhile. Trust they’ll find a home they like and can afford. Trust their lender will come through.

Canby Oregon, Canby Homes, Canby Real Estate

Trust For Both Homebuyers & Homesellers
So what do Canby, Oregon homebuyers and homesellers share in common? Trust. And there is perhaps no greater trust that homebuyers and sellers have in common than in their Realtor.

After all, your Realtor is someone you expect to be there to help navigate your way through what is frequently the largest financial transaction of a lifetime.  Similar to an attorney or priest, Realtors are expected to keep confidences.

But let’s first look at a few situations which underscore why it’s important to be able to trust your real estate agent.

  1. Trusting your Realtor means you don’t have to second guess suggestions you receive. Let’s take pricing your home, for example. If you can’t trust your agent to provide meaningful comparable home activity information, how can you possibly expect him or her to advise you once an offer comes in?
  2. Trusting your Realtor means you can breathe easier with less stress. Buying or selling a home is considered to be a particularly stressful activity. In addition, most homebuyers and homesellers don’t want to take on real estate as a second job, especially when making a house move. So expect that by having your bases well-covered by a professional you can believe, you’ll find the entire process far less taxing. If a Realtor is ‘pushy’ and won’t listen to your concerns, it’s likely a good time to find a new one.
  3. Trusting your Realtor means you can access his or her reliable resources.
    Speaking of taxing, if you need recommendations for an experienced 1031 tax exchange professional, or real estate attorney, or home inspector, or mortgage lender, or home repair contractor, expect those recommendations to be even more valuable from a trustworthy agent. 
  4. Trusting your Realtor means you can focus. There’s usually enough to deal with throughout the course of any real estate transaction. Dealing with lenders, appraisers, inspectors, contractors, title companies and the like can be overwhelming. As a result, you’re more likely to be far more effective if you can concentrate on what you’re best at, while having your real estate agent handle what he or she is best at.
  5. Trusting your Realtor means more time. Just like you can expect to have more time to go fishing if you hire a contractor to build your new deck, working with a trustworthy real estate agent allows you to do other, more enjoyable tasks than scheduling a home inspection, constantly dealing with escrow details, or meeting an appraiser.     

Canby Oregon, Canby Homes, Canby Real Estate

Chemical Equation for the Explosive Called TNT

Relationship Chemistry
Trust is easier when there is good ‘chemistry’ between a Realtor and their client. When seeking an agent to refer for out of area homebuyers or homesellers, there are many things that a Realtor can readily confirm. These include an agent’s years in business, designations earned, coverage area, plus areas of specialty like homes, farms or commercial property. 

As a result, I’m frequently able to locate a very good Realtor to ‘match’ with an out of state homebuyer or seller and it’s not always difficult.  That said, the one challenging element to know with certainty is the ‘chemistry’ that even a highly qualified, out-of-area Realtor will have with a new client.

People are different and that includes real estate agents. Most times relationships work out swimmingly with the referred agent. On rare occasions, it doesn’t work out. But going in and at least on paper, the homebuyer or homeseller who interviews a previously unknown, yet vetted Realtor, knows the agent is qualified and experienced, along with some important other facts about him or her. Plus, knowing these facts up front is typically less risky than taking a ‘shot in the dark’ with an unknown agent.

Canby Oregon, Canby Homes, Canby Real Estate

Does The Company Matter?
Because agents are independent contractors, the individual Realtor is who typically matters most. After all, you don’t expect a faceless corporation to answer your late night question, or go over the details of your settlement statement. For example, I don’t care that much about what hospital I go to, but I want to have a say in the surgeon who will do the operating. Similarly, it’s the individual agent who is in a position to make the most difference, whether from a small or large office. However, longevity of a real estate firm can be helpful in determining that they are probably doing something right.  So if a company you’re considering has been in existence for half a century or more, they’re likely not a ‘fly by night’ outfit.  

Canby Oregon, Canby Homes, Canby Real Estate

Alternative Agent Finding Methods
One of the ‘little secrets’ about real estate online is that they’re often paid ads. Realtors frequently buy what are known as ‘leads.’ Examples include Zillow and even Realtor.com. Sometimes this is done by the agent buying incoming inquiries regarding a specific zip code. Sometimes, the agent pays for better placement on a real estate website page in order to stand out.

If you decide to use a magazine or the Internet to locate an agent, it may be best to consider that as a first step of information gathering. Promotional materials can be misleading and if carefully crafted, can leave out a lot of important information. For example, if an agent is brand new, he or she may focus on how many agents their company employs, personal community involvement like donations to charity, or sponsorships. While these could be nice facts, they may not have a lot to do with the agent’s proficiency, professionalism, or trustworthiness. 

Referrals Are Built on Trust
One good way to find a trustworthy Realtor is to ask people you trust and get a referral. The ‘proof is in the pudding,’ so if your friend or family member is happy with a specific real estate agent, there’s a good chance for a similar repeat performance.

Canby Oregon, Canby Homes, Canby Real Estate

What Color Hat Does Your Realtor Wear?

White Hat or Black Hat?
One area where certain real estate agents are sometimes revealed to be wearing either a ‘white hat’ or ‘black hat’ is in the area known as ‘dual agency’ or ‘disclosed limited agency.’ This is a situation when an agent with a listed property also works with the buyer. To be clear, most Realtors are aboveboard and honest, continually looking out for their client’s best interests.

That said, the challenge to some agents comes when the agent attempts to ‘elbow aside’ other buyers, their agents and/or offers, in order to push his or her offer through. Why on earth would a Realtor push hard to get their offer accepted, since it’s all about simply selling the house, isn’t it? Not exactly. That’s because if the listing Realtor also sells your home, they typically get paid more.

Canby Oregon, Canby Homes, Canby Real Estate

Agency Pamphlet

Dual agency is well known as a potential minefield among ethically challenged agents and as a result, the State of Oregon, the National Association of Realtors and the Oregon Association of Realtors all have rules in place to help prevent its abuse.

Canby Oregon, Canby Homes, Canby Real Estate

Dueling with Dual Agency
In Realtor circles, the topic of dual agency has proponents and detractors. As a result, don’t expect every real estate agent you run into to have the same opinion. In reality, dual agency can be a very good thing, as seen in our previous article titled “5 ‘Insider Oregon Real Estate Tips.’ There, the topic Having A ‘Double Agent’ Can Be A Good Thing ranks as item #1 out of the five items listed. The advantages to having an agent on both sides of a real estate transaction are clear.

The result, good or bad, can significantly depend on your agent’s trustworthiness. For example, hurriedly accepting the first offer can work out. That’s because sometimes the first offer is the best offer. Alternatively, acting without as much available information as possible sometimes comes at significant expense to the seller, who may be urged to quickly accept the offer their listing (seller’s) agent has written. The problem is that the listing Realtor can be expected to reasonably know how much activity there is on the property for sale. Again, trust is key here.

Plus, given the amount of agent and buyer activity, along with the quality of inquiries (such as highly motivated, qualified buyers), the seller’s Realtor may have even heard comments from other agents about possible future offers. So by pushing his or her own offer, is the listing Realtor providing the seller with all known information in order to truly serve the seller’s best interest? Sometimes the only person to seemingly know the answer is the listing agent. A Harvard Business Review article notes why this situation can be a problem:

“Take cheating. Claremont McKenna psychologist Piercarlo Valdesolo and I have conducted many experiments on the topic, and one surprising (if disheartening) result we have found, time and again, is that 90% of people—most of whom identify themselves as morally upstanding—will act dishonestly to benefit themselves if they believe they won’t get caught. Why? Anonymity means no long-term cost will be exacted. Even more startling is the fact that most of those who cheat also refuse to characterize their actions as untrustworthy; they rationalize their behavior even while condemning the same in others…”

More than once, an honest real estate agent working with a highly qualified and motivated buyer has inquired about a property, even written up that buyer’s offer, only to have the listing agent hurriedly put together his or her own offer and submit it to the seller in order to ‘tie up’ the property (and presumably make more money), before other offers can be considered. It’s a fact of the real estate business and as a result, unethical agents develop a reputation and are often viewed warily by others in the business.

Canby Oregon, Canby Homes, Canby Real Estate

The ‘Commission Effect’
If all these elements don’t sufficiently complicate the task of finding a trustworthy Realtor, there is also a phenomenon you might call the ‘commission effect.’ This is outlined in a previous article titled ‘5 little Known Realtor Insider Tips:’ Realtors Can Calculate Their Paycheck by Viewing a Property Listing Sheet. This means that for agents truly focused on maximizing their payday, you might expect them to guide you toward homes that pay a higher commission structure. The listing sheet is typically only seen by multiple listing members. Thankfully, most Realtors simply don’t do business in this manner.

Canby Oregon, Canby Homes, Canby Real Estate

The Bottom Line
President Ronald Reagan sometimes used the term ‘Trust, but verify’ during his high level negotiations. This old Russian proverb could be a  helpful approach to grant you peace of mind in finding a trustworthy agent for your next real estate transaction. Do your research and ask family and friends for Realtor references. Be open and honest, then make your best decision based on relevant, reliable information for your situation.  

Do you have an Oregon real estate question? Contact our sponsor, Certified Realty today using the convenient form below, or call (800) 637-1950.

Canby’s ‘Magic’ Real Estate Number

12 Feb
Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

Abundant Canby Area Real Estate Information Can Seem Like Drinking Water From A Fire Hydrant

TMREI: Too Much Real Estate Information
Sometimes absorbing the sea of Canby, Oregon real estate information seems more like drinking from a fire hydrant. Yet, out of all the sometimes helpful real estate data bandied about, there is one especially helpful number, which when understood, can provide near-magical clarity to Canby, Oregon homebuyers and homesellers, alike.

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

You Needn’t Be a Magician to Understand Canby, Oregon Home Inventory

What Is It?
What is this ‘magic’ number and what does it represent? Simply put, it’s the current figure for housing inventory, typically expressed in months of projected home supply.

Listen to the audio podcast presentation of this helpful program on Canby, Oregon real estate by clicking here or on the above link.

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

Canby, Oregon Real Estate Inventory is Different Than Bingo

Housing inventory is also sometimes known as home inventory or housing backlog. Why is this number so important? Once you understand the single figure that defines our current regional supply of homes for sale, you have an instant ‘snapshot’ on whether you’re in a buyer’s market, seller’s market, or more of a balanced real estate market. Armed with that information, you’re far more ready to do ‘battle’ in the real estate ‘trenches’ and more likely to avoid the usual debilitating ‘minefields.’ 

Normal Home Supply
Among real estate experts, a ‘normal’ range for home supply in parts of Oregon-including Canby-is frequently cited as somewhere between three to six months. For example, if the home supply figure is three, then hypothetically our market would be ‘out of homes’ in three months, provided no new homes were placed for sale. In other words, if our regional home inventory figure is somewhere between three to six months, we’re typically experiencing a normal market, meaning one not far from a balance of supply and demand, also called equilibrium. In a way, home inventory is kind of like an ‘absorption rate’ for how fast supply is used up.

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

Your Mileage May Vary
It’s helpful to understand that home inventory figures are more of an average for a region. In Oregon, some major real estate regions include Portland, Bend, Eugene, Salem and the Oregon Coast. Canby is closer to Portland, which makes it part of the greater Portland area metro for purposes of market statistics. 

So if your property is located in or near Canby, the Portland area inventory figure is frequently cited as a bellwether for housing backlog. If your home is located closer to Aurora or Hubbard and within Marion County, the Salem inventory figure provides an alternative approximation of local home supply. It’s also possible your specific area could be somewhat different altogether, based on a hybrid of hyper-local factors affecting both demand and supply. That said, home inventory is an undeniable and convenient ‘thumbnail’ sketch to help assess your market.

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

What’s The Practical Impact of Housing Inventory?
Consider real estate and inventory like a pipeline. If more flows through it, the product is plentiful and therefore the cheaper it is to buy. So with a lower, dwindling home supply and the spigot turned down, the reverse is true. That’s when the local real estate environment favors sellers, because there are more buyers and it’s considered a ‘seller’s market.’ In that case, expect a short market time and an environment where homesellers receive multiple offers, often at or above listing price. If the supply of homes is higher, it’s considered a ‘buyer’s market.’ This means you can expect a longer market time, with homesellers seeing few, if any offers…and frequently for less than the asking price.  

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

Negotiation is Expected, But Most Canby, Oregon Homesellers Don’t Like ‘Armwrestling’ With Buyers

It’s routinely a good idea for buyers to get a ‘heads up’ before making an offer to determine how ‘hot’ or ‘cold’ the market is. Otherwise, if you ‘lowball’ a just-listed home in a seller’s market, you may be lucky to even get a counteroffer instead of an outright rejection by sellers experiencing lots of calls and showings on their property. Coming in with an offer that’s too low sometimes causes offended sellers to refuse to seriously consider a possible follow up offer.

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

The Number of Competing Canby, Oregon Homes for Sale Affects Market Time

What’s the Big Deal About Housing Inventory?
One reason housing inventory is so important is because it helps buyers and sellers to better manage expectations. Most buyers are interested in how long it may take to find the ‘right’ house. Inventory affects this. Alternatively, most sellers are interested in how long it may take to find a qualified buyer. Inventory affects this, too.

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

Canby, Oregon Homesellers Can ‘Jumpstart’ Activity With Accurate Pricing

That’s because a high home inventory tends to slow down the market time and low inventory frequently provides a ‘jump start’ to activity. One way sellers can help to avoid an excessively long market time is to review comparable local home sales information provided by their Realtor to ensure proper, market pricing.

Another reason housing inventory is crucial is because it can significantly impact so many other important factors. In other words, inventory is a ‘driver’ for market time, selling price, appraisal results, lendability and more.

Okay, So Inventory Is Important. What Does It Look Like?

Canby Oregon, Canby Homes, Canby Oregon Real Estate Canby Oregon Homes

Portland Metro Sample Home Inventory

The above image provides a good example of fluctuating home inventory. As our Canby, Oregon real estate market bounced back from the severe market downturn of the Great Recession, regional home inventory reduced from more than 20 months of housing supply to less than three.

Canby, Canby Homes, Canby Oregon Real Estate, Canby Oregon

It’s Wise to Consult An Experienced Realtor Before You Leap Into the Market

Contact the Experts
Thinking about selling your Canby, Oregon property? Know the market before diving in! Contact Certified Realty with your questions and for a free consultation on what your property could sell for today using the contact form below, or call (800) 637-1950.

%d bloggers like this: